The South African rand weakened on Thursday morning as investors awaited President Cyril Ramaphosa’s State of the Nation Address (SONA) for insights into the country’s economic and political direction.
At 06:41 GMT, the rand traded at 18.5925 per dollar, reflecting a 0.3% decline from its previous close.
Ramaphosa will deliver his first SONA under the coalition government at 17:00 GMT, where investors expect clarity on economic reforms and strategies to address structural challenges. While the annual address has not typically influenced markets, analysts suggest this year’s speech could be different. Key areas of focus include ongoing economic reforms, efforts to remove South Africa from the Financial Action Task Force‘s greylist, and plans to stabilize public finances.
Meanwhile, U.S. President Donald Trump made controversial remarks on Sunday, claiming—without citing evidence—that South Africa is confiscating land and that certain groups are being treated unfairly. He warned that U.S. funding would be cut until the situation was investigated.
In a research note, ETM Analytics suggested that Ramaphosa would likely use SONA as an opportunity to present South Africa’s economic future in a more favourable light.
“This SONA will, therefore, be the main event of the day and capture the bulk of the market’s attention through the afternoon and evening as it receives more and more coverage,” the note added.
South Africa’s benchmark 2030 government bond weakened in early trading, with the yield rising by 1.5 basis points to 9.06%.
